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Summer-tested Phoenix braves relentless wave of extreme heat

UNSPLASH

MICHAEL SHIELDS has serviced swimming pools in the Phoenix area for years, enough time to hone a strategy for surviving the brutal heat that descends on this Arizona desert city every summer.

He typically rises at 4 a.m., covers himself in protective clothing, loads up on electrolyte drinks and drenches his hands and face with sunscreen. Ready to face the inferno, he arrives at his first customer’s home well before dawn, when the temperature is already in the mid-90s Fahrenheit.

There are days when the mercury climbs to well over 100 degrees Fahrenheit (38 degrees Celsius) in the summer here. But over the past two weeks, the mercury has hit 110 degrees F (43 C) or higher every afternoon, a streak of extreme temperatures that could stretch into next week, breaking Phoenix’s 1974 record of 18 consecutive days, forecasters say.

Nearly a third of US residents, from Oregon to Texas, are under heat warnings as an extreme heat wave bakes the West and Southwest United States because of a high-pressure dome of air overhead that prevents rain from reaching the areas below.

In Phoenix, centered squarely under the dome, the temperature had already hit 109 F (43 C) as of noon on Saturday, and was set to hit a high of 115 F (46 C), climbing to 116 (47 C) on Sunday, according to the National Weather Service.

It has been a heat wave that has given pause to many Phoenix residents, even to summer-tested veterans like Mr. Shields, who says he’s been avoiding news reports about it.

“I don’t look at the weather,” said Mr. Shields, 67. “I can get psyched out that way.”

Climate Check, a climate-focused real-estate analysis group, reported that between 1985 and 2005, Phoenix experienced about seven days a year above 109 F (43 C). By 2050, they estimated, Phoenix residents are expected to see an average of 44 days per year over that temperature.

Heat-related deaths in Phoenix’s Maricopa County have risen over the last few years, increasing from 338 in 2021 to 425 last year. So far in 2023, there have been 12 heat-related deaths, with 55 still under investigation.

Emergency service workers and a government office focused on helping the city deal with the heat have distributed bottled water to homeless people and encourage them to seek shelter in several public cooling stations.

Some of the cooling stations are extending their hours into the night, said David Hondula, who directs the city’s Office of Heat Response and Mitigation.

This summer, the city has nearly doubled the number of volunteers handing out water, hats and sunscreen, he said, adding it has plans to offer grants to help people plant more trees to increase shade.

PARK CLOSURES
Hiking trails at nearby Piestewa Peak and Camelback Mountain have been closed during the hottest hours of the day. Phoenix Parks and Recreation spokesman Adam Waltz said the temperatures on the unshaded portions of the trails can hit 130 or 140 degrees (54 or 60 C), as the sun beats down and heat rises off the earth.

Outdoor kids’ sports have mostly already wrapped up due to the punishing summers, ending around June and starting up again in September, Mr. Waltz said.

Despite the trend toward more very hot days, Phoenix residents have tended to shrug off the heat, he said. They are simply accustomed to dealing with it.

But the long-term warming trend – with nights that don’t cool down and asphalt and concrete that retain heat and themselves can help push up temperatures – is worrisome.

“People outside of Phoenix see 113 or 114 and gasp,” Mr. Waltz said. “We usually take cover around 118 or 119. But it’s very hot and dangerous.”

Heat can affect health, leading to exhaustion, dizziness, thirst or the more serious heatstroke, when the body’s core temperature goes above 105 degrees F (40 degrees C).

HEAT DOME ‘PARKED’ OVERHEAD
The heat wave spreading across a swath of the US from Oregon, down the West Coast, into the Southwest including Texas and on to Alabama is unusual said Zack Taylor, a meteorologist with the National Weather Service’s Weather Prediction Center in College Park, Maryland.

There’s a mass of high pressure air sitting like a dome “parked” over the affected area and deflecting any rain and storm systems that could provide relief to the 100 million people under heat warnings and cautions, said Mr. Taylor.

Phoenix is getting some of the worst of it, as the air mass is centered right over the Southwest.

“It’s been anchored there for days and days,” Mr. Taylor said. “This is not your typical summer heat.”

After reaching 115 F (46 C) on Saturday and 116 (47 C) on Sunday temperatures are forecast to stay above 110 F (43 C) through next week, the weather service said.

Las Vegas is expected to hit 115 F on Saturday and 118 F (47 C) on Sunday; Death Valley might hit 127 (53 C) on Saturday and 130 (54 C) on Sunday, the agency said.

Scientists say fossil fuel-driven climate change is bringing hotter and deadlier temperatures, warning that the world needs to drastically cut carbon emissions to prevent its catastrophic effects.

Outside of Phoenix in Mesa on Friday, science intern Emily Luberto covered up in long sleeves, pants and hiking boots to collect soil samples for a project studying the Valley Fever illness.

Her group had hopes of beating some of the heat by arriving early. But by 8:30 a.m., temperatures had already surpassed 100 (38 C).

Asphalt temperatures can reach 160 degrees F (71 C) in the summer, the Arizona Humane Society wrote on its blog.

The sidewalks and streets are so hot that dog walker Cooper Burton will not take animals out after 9 a.m.

“We don’t want their paws to burn,” he said. — Reuters

Rescuers retrieve 8 bodies from flooded South Korea underpass

RESCUE WORKERS take part in a search and rescue operation near an underpass that has been submerged by a flooded river caused by torrential rain in Cheongju, South Korea, July 16. 2023. — REUTERS

CHEONGJU, South Korea — The bodies of eight people trapped in a tunnel submerged by heavy rain in central South Korea were retrieved on Sunday, authorities and local media said, taking the death toll from days of torrential downpours that have pounded the country to 35.

Seo Jeong-il, head of the west Cheongju fire station, said some 15 vehicles, including a bus, were estimated to have been submerged in the underpass in the city shortly after a levee of a nearby river was destroyed by the downpours on Saturday.

CCTV footage aired on local broadcaster MBC showed muddy water rushing into the tunnel as vehicles drove past with their wheels submerged.

“We are focusing on the search operation as there’s likely more people there,” Seo told reporters. “We are doing our best to wrap it up today.”

The death toll in the tunnel stands at nine, including one body retrieved on Saturday, South Korea’s Yonhap news agency reported.

The Ministry of Interior and Safety said 10 people were missing across the country as of 11 a.m. (0200 GMT) as heavy downpours caused landslides and floods, with evacuation orders covering 7,866 people.

The ministry data does not include those in the flooded tunnel because it was not immediately clear how many people were trapped underwater.

The latest disaster took place despite South Korea’s vow to step up preparedness against torrential rains after Seoul was hit last year with floods caused by the heaviest downpours in 115 years, inundating basement flats in low-lying neighborhoods, including in the largely affluent Gangnam district. 

One survivor from the submerged tunnel said the government should have restricted access to the underpass when flooding was expected, Yonhap reported.

A North Chungcheong province official said the levee unexpectedly collapsed before the precipitation reached the level required for restricting access to the tunnel.

President Yoon Suk Yeol, now on an overseas trip, convened a video-linked response meeting and said some regions had failed to take preemptive measures against the extreme weather.

Mr. Yoon ordered Prime Minister Han Duck-soo to mobilize all available resources to minimise casualties and urged the weather agency to quickly release forecasts because more heavy rain was expected in the coming days, his office said.

The Korea Meteorological Administration said the central and southern parts of the country could receive as much as 300 millimeters (12 inches) of additional rain by Tuesday.

While South Korea often experiences heavy rains in summer, it has witnessed a sharp increase in torrential rains in recent years.

Korea Railroad Corp. has halted all slow trains and some bullet trains since Saturday due to safety concerns over landslides, track flooding and falling rocks. — Reuters

Biden’s election war chest trails Trump’s in size, filings show

US PRESIDENT JOSEPH R. BIDEN, JR. — IMAGE VIA GAGE SKIDMORE/CC BY-SA 2.0/FLICKR

WASHINGTON — President Joseph R. Biden’s re-election campaign ended last month with about $20 million in the bank, just trailing the $22 million plus reported by leading Republican candidate Donald Trump, according to financial disclosures released on Saturday.

The disclosures filed with the Federal Election Commission point to a competitive money race ahead of the November 2024 presidential election.

Mr. Biden has amassed a smaller war chest to past presidents at this point in recent re-election campaigns. Democrat Barack Obama had $37 million at this point in 2011, while Mr. Trump had more over $56 million in June 2019.

The funds detailed in the disclosures represent a significant chunk of the funding behind the campaigns, but do not include money gathered by allied super PACs, which typically raise massive sums from the wealthiest donors and are due to disclose details on their finances later in July.

Mr. Biden’s campaign announced on Friday that his re-election effort, when including the Democratic Party’s accounts, had $77 million in the bank. 

The president is not expected to face a serious challenge in the Democratic nomination contest. One challenger, anti-vaccine activist Robert F. Kennedy, Jr., reported raising just $6 million through June, while another, self-help guru Marianne Williamson, took in less than $1 million.

Mr. Trump’s campaign, which was launched in November, reported spending about $9 million in the three months through June, more than any other campaign, according to the disclosures wiled to election regulators. The spending included more than $2 million paid to Campaign Inbox LLC, a digital fundraising firm.

Florida Governor Ron DeSantis, who ranks second to Trump in most opinion polls for the Republican nomination contest, had about $12 million in his campaign account, considerably less than the $21 million had by fellow Republican Tim Scott, a US senator for South Carolina. Mr. DeSantis and Mr. Scott launched their campaigns in May.

Long-shot Republican candidates Doug Burgum and Vivek Ramaswamy disclosed putting millions of dollars of their own money into their campaigns. Burgum, the governor of North Dakota, lent about $10 million to his campaign and Mr. Ramaswamy, a former biotechnology executive, lent his about $15 million. — Reuters

Bitcoin hovers near 13-month high as crypto investors cheer Ripple’s legal victory

STOCK PHOTO | Image by André François McKenzie from Unsplash

SINGAPORE/WASHINGTON — Bitcoin was hovering near its highest so far this year on Friday after crypto investors took encouragement from a legal victory in which the cryptocurrency XRP was ruled not to be a security.

A US judge said on Thursday that Ripple Labs, Inc. did not violate securities law by selling its XRP token on public exchanges.

The case marks the first win for a cryptocurrency company in a lawsuit brought by the US Securities and Exchange Commission (SEC). Although the decision was specific to the individual case, it unleashed a wave of optimism among crypto investors that more cryptocurrencies may also not be deemed securities.

Still, the enthusiasm for some was tempered by a report from the Wall Street Journal that Binance, the world’s largest cryptocurrency exchange, has laid off more than 1,000 people in recent weeks. The lay-offs are ongoing and could result in the exchange losing more than a third of its staff, the report said, citing a person familiar with the matter.

Coinbase also announced on Friday that it would limit its crypto staking services for retail customers in California, New Jersey, South Carolina and Wisconsin, pending proceedings several states initiated against the exchange last month, claiming that the program violated securities laws.

Bitcoin hit its highest price since June 2022 earlier, touching $31,818, before edging down to trade around $30,091 at 2009 GMT on Friday.

Second-biggest token ether had its best session since March on Thursday and XRP, which the US judge ruled could be legally sold on public crypto exchanges, soared 73% on Thursday and held most of these gains on Friday.

“The regulatory environment is changing,” said Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital. “And by what we have seen in the last 24 hours, it could be for the better.”

Justin d’Anethan, head of business development in Asia at Keyrock, a digital assets market maker in Hong Kong, said finding that XRP tokens sold on public crypto exchanges were not securities under law “probably serves as a precedent.”

“Ripple stakeholders were waiting for some regulatory clarity. Yesterday the court seems to have provided just that,” he said.

Following the decision, several major cryptocurrency exchanges, including Coinbase and Bitstamp, resumed trading of XRP on their platforms, after having suspended trading of the token in 2021 due to the SEC’s lawsuit. Binance.US said on Friday it had also enabled XRP trading on its exchange.

Coinbase, which was sued by the SEC last month for alleged securities laws violations, saw its shares surge nearly 25% on Thursday as investors hoped that the ruling in the Ripple case would bode well for Coinbase.

SLOW RECOVERY
Cryptocurrencies have staged a gradual recovery so far this year, after prices fell sharply last year and a series of bankruptcies at major crypto firms, including crypto exchange FTX, left investors with heavy losses.

The collapse of FTX added momentum to global regulatory efforts at reining in the sector, especially to protect small investors lured by fast returns.

China has all but banned crypto. US investigators raking over FTX have accused founder Sam Bankman-Fried of multibillion-dollar fraud, to which he has pleaded not guilty.

Alex Mashinsky, the founder of bankrupt crypto lender Celsius, was charged with fraud for misleading customers and artificially inflating the value of the company’s token, according to a US indictment unsealed on Thursday. He pleaded not guilty.

Meanwhile, Coinbase and bigger rival Binance face lawsuits, which they are contesting, from the SEC and in Binance’s case from other regulators as well.

A top SEC official said last month the industry has “an ethos built around non-compliance.”

At Binance, the lay-offs as reported by the Wall Street Journal are occurring as a string of executives have recently departed the company, including Chief Strategy Officer Patrick Hillmann. Hillmann confirmed on Twitter that he was leaving the exchange, citing personal reasons.

Still, crypto investors have taken encouragement from the world’s biggest asset manager, BlackRock, filing to launch a bitcoin exchange traded fund last month. Earlier in July exchange operator Cboe refreshed its filing for a similar fund to be run by asset manager Fidelity.

As a risk asset, cryptocurrencies could also stand to gain from a weaker dollar.

“We’d gone through this long period of just consistently negative news to make the space look pretty grimy,” said Chris Weston, head of research at brokerage Pepperstone in Melbourne.

“For the first time in a while, it’s been consistently positive news coming though and that means you’ve got momentum.” — Reuters

Experience how to live like ‘Barbie’ in Barbie Land at SM Mall of Asia Atrium

To give everyone a chance to live their Barbie dream, SM Mall of Asia, Toy Kingdom and RichPrime have launched the Barbie Land Experience at the SM Mall of Asia Atrium. The pinktastic installation will be available until July 21, and is open for free to all Barbies, Kens and humans too!

The Barbie Land Experience features a 2-storey Barbie Dream House, with a music room that features songs from the official Barbie the Album soundtrack released by Warner Music Philippines, a vanity room and, of course, her pool. And what’s a dream house without some fabulous fashion? Also on display in Barbie Land are Barbie’s outfits.

Aspiring Barbies and Kens can also have their photos taken in Barbie box standees found on the Land.

And for a sweet treat – there is a Krispy Kreme donut cart, with a sampling of Barbie™ doughnuts!

The Barbie™ Movie Doll Collection will be in display and available for purchase from Toy Kingdom. For those seeking to make a #Barbiecore fashion statement, Barbie apparel and the Barbie™ Movie shoe collection from Superga are in display to give you inspiration.

Don’t miss the Barbie Land Experience at SM Mall of Asia!

 


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vivo Y36 now available in PHL with newest ambassador Anne Curtis

vivo, one of the most sought-after smartphone brands in the country, has officially launched the vivo Y36 today, July 15.

With its official tagline “Love the Game, Smooth and Seamless,” this newest addition to vivo’s Y Series features the Snapdragon 680, a 6nm processing system that powers up the speed but slows down unnecessary energy consumption.

Without a doubt, this device definitely reinforces vivo’s growing position in the market to deliver incredible smartphones for gaming.

Along with the introduction of Y36 to the Philippine market, vivo also officially launches Anne Curtis as its newest ambassador for its smartphone releases.

Globally known as a multi-faceted actress, Ms. Curtis constantly breaks boundaries as a true powerhouse whose talents span across screen and stage. The actress’ career is a beaming trajectory which vivo envisions to match as it continues to release top-notch devices like the vivo Y36.

Next-level gaming experience

The vivo Y36 fulfills every gamer’s expectations. It features 240Hz Gaming Sampling rate + 90Hz refresh rate for more accurate touch responsiveness, so you can win your battles in games that require high frames per second, like Mobile Legends or Call of Duty. To add, it boasts 8GB RAM with Turbo memory booster, and 256GB Big Storage + up to 1TB Expandability which help hoist users’ gaming experience, particularly in fast-paced gaming scenarios.

Uninterrupted gameplays

Gamers will never need to worry about making it through the day on just a single charge. Powered by 5000mAh battery with 44W fast-charging capability, vivo Y36 is a truly reliable smartphone device that gives users extended longevity and freedom in phone navigation.

Premium design

Never be basic. Play all of your games in style. vivo Y36 comes in two cool, iconic designs made out of Fluorite AG Glass for its Meteor Black variant while the Glitter Aqua variant boasts Golden Ripple Process & Crystal Glass material. Take note that the designs are resistant to scratches and fingerprints.

@vivo_philippines Glitter Aqua symbolizes youth, creativity and serenity, let this color refresh you. vivo Y36 coming soon. #vivoGoals #vivoSmartphones #techtokshop #TechFestival #LoveTheGame #SmoothAndSeamlessY36 #vivoY36 ♬ original sound – vivo_philippines

With all of these powerhouse components, your hunt for a heavy-duty gaming smartphone is over. Priced at P12,999, the vivo Y36 will help you bring your A-game to the table.

Visit any vivo concept stores near you to get your hands on this smartphone or through popular ecommerce platforms such as Shopee, Lazada, and TikTok Shop starting today.

To know more about the vivo Y36, visit vivo Philippines’ official website and follow them on their official social media pages on Facebook, Instagram, YouTube, Twitter, and TikTok.

 


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Union Solar holds inaugural ‘Swing for Sustainability’ Golf Tournament

Union Solar Golf Tournament

Leading local solar energy solutions provider connects environmentally conscious VIPs through exclusive golf tournament

How do you get some of the country’s top decision-makers to consider making the move to solar energy? By treating them to a sunny day of golf. Union Solar, one of the Philippines’ leading solar energy solutions providers, held their inaugural Swing for Sustainability golf tournament last June 29, 2023, at Wack-Wack Golf & Country Club in Mandaluyong City. The event helped strengthen the network of environmentally conscious business leaders looking to create a more sustainable Philippines, while raising funds for GMA Kapuso Foundation, Inc.

Union Solar COO Paul Chua

“Events like these can help us spread awareness about the use of solar panels as an alternative to renewable energy, and connect with key leaders in different industries,” shares Union Solar COO Pierry Paul Chua. Union Solar is the renewable energy arm of the PHINMA Group, under the Construction Materials Division, specializing in the supply and installation of roof-mounted solar facilities and solar farm. The company aims to build a more sustainable future for the Philippines by making solar energy more accessible to Filipinos.

Swing for Sustainability delivered on its promise to provide a fun-filled day of golf, hosting an 18-hole shotgun tournament, raffle, and special awards ceremony for some of the event’s more noteworthy performances. Attending the tournament were Undersecretary Giovanni Bacordo and MGen Fernan Trinidad of the Department of Energy, PHINMA Solar President Eduardo Sahagun, and the father-and-son pair of Thomas and Marlon Stockinger, among others.

After a rousing morning of golf, players were treated to an afternoon program over lunch. Senators Risa Hontiveros and Loren Legarda shared a few words with the VIPs through video message, underscoring the need for businesses to support renewable energy for the sake of the environment.

Senator Risa Hontiveros

“We should gather more like-minded people, groups, and organizations that can consistently and constantly campaign and push for the use of renewable energy in our homes, in our communities, in our entire country,” Hontiveros said. “The science, data, and hard facts already point to renewable energy as our best and perhaps only options for a genuinely sustainable future.

Jason Barcelon, Edric Co, and Christopher Ong were named the champions for their respective classes, while Julianna Go took home the trophy for the Women’s tournament.

Marty Regino was given a special award for Most Accurate, while Sarah Santos won the Most Inaccurate award in the spirit of good fun. Ricky Solatorio, Robert Te, and Elaine Chua won the awards for Closest to the Pin, Farthest from the Pin, and Most Exercised, respectively.

In the photo (L-R): Giovanni Bacordo, Paul Chua and Marlon Stockinger

Swing for Sustainability managed to raise PHP100,000 for the GMA Kapuso Foundation, helping fund the organization’s numerous social projects in health, education, disaster relief, and values formation.

The tournament was organized in partnership with Phi Brow Master and Skin Care specialist Pino by Whena Pino, and with hydration partners SIP purified water and Vida sparkling drink. Sponsors Brills Marketing Corporation; Powerloop Incorporated; Likha Residences; Microtel by Wyndham; Tryp by Wyndham; JPP Cargo Logistics, Inc.; and Equinox Synergy helped make Swing for Sustainability possible. The event was also made possible with special thanks to Haraya Residences, Sol-Ace Power Corporation, Prodescon Development Corporation, Haier, and Megacem Inc.

“We are hoping by doing these kinds of marketing events, it would be able to help in promoting awareness about the importance of renewable energy for a sustainable future,” Chua says. “It’s always about someone starting something; if we don’t start, no one will ever know or begin.”

With the Philippine’s top business leaders coming together to discuss renewable energy, the country’s sustainable future does indeed look sunnier than ever.

 


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Building materials price growth in Metro Manila eases in June 

Laborers work at a construction site in Manila. — PHILIPPINE STAR/ RUSSELL PALMA

By Abigail Marie P. YraolaResearcher

PRICE GROWTH of construction materials in Metro Manila eased at both the wholesale and retail levels in June, the Philippine Statistics Authority (PSA) reported on Friday.  

“Base effects, moderating commodity prices, and slowing demand likely translated to the slower expansion,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail. 

For Oikonomia Advisory & Research, Inc. President and Chief Economist John Paolo R. Rivera, the slowdown in bulk building materials can be attributed to slower construction activities as interest rates remain relatively higher.  

Metro Manila's Construction Materials Wholesale Price Index

Meanwhile, for retail building materials, the slowdown is driven by the persistence of relatively elevated prices of construction materials, but not as high as before, he said in an e-mail. 

“The cost of borrowing may be too high for construction companies that compels them to slow down construction activities,” Mr. Rivera added. 

Preliminary data from the PSA showed that the Construction Materials Wholesale Price Index (CMWPI) in the National Capital Region (NCR) saw a slowdown, recording a year-on-year growth rate of 5.9% in June. This was the slowest growth in 16 months since the reading of 5.2% in February 2022.

The latest data showed a decrease compared to the 6.5% growth logged in May and the 8.9% growth recorded a year earlier. June marked the eighth consecutive month of declining growth rates.

In the first half of the year, the CMWPI averaged 7.6%, higher than the pace of 6.9% recorded in the same period last year.

The PSA attributed the slower growth to heavily weighted items such as reinforcing and structural steel, where price growth decelerated to 2.6% from 4.1% in May, as well as to sand and gravel (4.1% from 4.7%).

Slower price growth was also observed in painting works (11.2% from 12.4%); lumber (5.1% from 6.2%); sand and gravel (4.1% from 4.7%); plumbing fixtures and accessories or waterworks (3.6% from 4.2%); tile works (1% from 1.4%); electrical works (5.9% from 6.3%); doors, jambs, and steel casements (4.9% from 5.2%); concrete products and cement (8.9% from 9.1%); and plywood (4.2% from 4.3%).

On the other hand, price growth accelerated in hardware, reaching 6.2% from 6% in May, and in G.I. sheets, increasing to 14.8% from 13.8%.

Meanwhile, commodity groups for glass and glass products, asphalt, and machinery and equipment rental remained unchanged.

Metro Manila's Construction Materials Retail Price IndexIn a separate announcement, the statistics agency reported that retail price growth in construction materials in Metro Manila eased in June.

The Construction Materials Retail Price Index (CMRPI) in the NCR recorded a year-on-year growth of 1.9% in June, compared to 2.6% in May and 6.8% in the corresponding month of the previous year.

The June reading marked the lowest growth in 22 months, since the 1.5% recorded in August 2021.

“The downtrend of the CMRPI during the month was primarily caused by the annual decline in the miscellaneous construction materials at 1.6% from 0.3% annual increment in the previous month,” the PSA said. 

The continued deceleration was also attributed to various factors, including tinsmithry materials (3.9% from 4.5%); carpentry materials (2.1% from 2.6%); electrical materials (1.2% from 2%); painting materials and related compounds (4.2% from 4.8%); plumbing materials (0.3% from 0.7%); and masonry materials (1.6% from 2%).

From January to June, the CMRPI averaged 3.7%, which was slower than the 5% recorded during the same period a year ago.

According to Mr. Rivera, the movement of price growth for building materials in the coming months will depend on the direction of inflation, interest rates, and the exchange rate.

Meanwhile for Mr. Mapa, “We can expect prices to moderate further in the coming months as demand for construction activities may slow due to rising borrowing costs.” 

Headline inflation in June slowed to 5.4% from 6.1% in May, the slowest in 14 months or since the 4.9% in April 2022. The June inflation print was the first-time inflation fell below 6% since the 5.4% print in May 2022. 

Economic managers upbeat on meeting medium-term fiscal targets

PHILIPPINE STAR/WALTER BOLLOZOS

The Philippines’ economic managers said on Thursday that they are on track to meet the targets under the government’s medium-term fiscal program.

“We’re on track. In fact, we’re doing better than our original plan,” Department of Finance (DoF) Secretary Benjamin E. Diokno said during the Philippine Economic Briefing in Toronto, Canada.

Under the medium-term fiscal framework, the government aims to reduce the debt-to-gross domestic product (GDP) ratio to less than 60% by 2025. At the same time, it expects to decrease the deficit-to-GDP ratio to 3% by 2028.

“We’re confident we’ll get there. We inherited a much superior tax system. We are going to improve tax administration through digitalization. We intend to collect more revenues,” he added.

The deficit-to-GDP ratio at the end of March was 4.84%, lower than the 6.41% recorded in the first quarter of the previous year and the 7.33% seen in 2022.

The government has set the deficit ceiling for this year at P1.499 trillion, equivalent to 6.1% of the gross domestic product.

Meanwhile, the country’s debt-to-GDP ratio stood at 61% as of the end of March, still above the 60% threshold considered manageable by multilateral lenders for developing economies.

Secretary Arsenio M. Balisacan of the National Economic and Development Authority (NEDA) expressed the view that economic growth will continue to demonstrate resilience.

“Despite the headwinds, we expect the economy to grow 6-7% this year. That’s quite impressive given the downscaling of growth prospects in many other economies,” he said.

In the first quarter, the Philippine economy expanded by 6.4%, which was slower than the revised 7.1% growth in the previous quarter and the 8% growth recorded a year ago.

The government has set a growth target of 6-7% for this year and aims for a growth range of 6.5-8% from 2024 to 2028.

“In the longer term, we expect to grow by 6.5-8%. With that kind of growth, we should be able to dramatically transform the economy and reduce poverty. We need a lot of structural and policy reforms. The aim is to increase the potential growth of the economy,” he added.

NEDA’s Mr. Balisacan also emphasized the need to “expand and diversify” the economy in order to enhance its resilience against external shocks.

“In the last couple of years, the economy has been dependent on demand growth. Nearly two-thirds of the economy is driven by consumption growth. For the economy to sustain its rapid transformation, we need to go beyond that, hence investment, we are trying to get new drivers, like tourism, mining, creatives, and many other sectors,” he said.

“Sound fiscal management gives us solid financial footing to invest more in high-growth sectors that will be of benefit to more Filipinos,” Mr. Diokno added.

The Finance chief said that the government is also “pursuing structural reforms to accelerate investment and trade in the Philippines.”

He highlighted ongoing reforms such as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, which has reduced corporate income tax rates and provided incentives.

Under CREATE, the Fiscal Incentives Review Board has granted incentives to 39 projects, with an investment capital of P694 billion or $12.4 billion. These projects are expected to generate more than 28,000 jobs.

“We’ve been promising a lot of reforms, some tough, others tougher. We are confident we can do it,” Mr. Diokno added.

Mr. Balisacan said that the private sector’s involvement is necessary for reaching the country’s socio-economic agenda.

“This sector is the country’s drive of growth and innovation, financial resources, and technology and managerial capacities. Its involvement in public sector projects will result in better public services, lower consumer prices, and improve quality of life for all Filipinos,” he said.

“We are creating a policy environment conducive to effective, strategic, and growth-enhancing public-private partnerships (PPPs),” Mr. Diokno added.

As of June 30, the government has awarded 255 PPP projects with an estimated total cost of P2.58 trillion or $46.8 billion.

Mr. Balisacan said that there are also 107 projects in the pipeline, amounting to a value of P2.28 trillion or $41.3 billion.

These projects encompass various sectors, including transport (51), road (15), and property development (12), among others.

“More are being identified and evaluated for possible inclusion in this list,” Mr. Balisacan added.

PARTNERSHIPS

During the briefing, Mr. Diokno also expressed the government’s interest in collaborating with Canada on potential partnerships in key industries.

“We have uncharted waters to explore in terms of trade and investments in mutual areas of interest, including electronics manufacturing, machinery and electricity, mining, and agriculture,” he said.

UBS Securities Canada’s Managing Director Alain Auclair also acknowledged the country’s robust macroeconomic fundamentals and its capacity to withstand external headwinds.

“And with capable leadership at the forefront of a robust economic plan, the Philippines is poised for a promising economic future,” he added.

Sven List, senior vice president of Export Development Canada, said that they are exploring opportunities to access key markets in the Indo-Pacific region next year.

“Our strategy begins with industrial sectors where Canada has a proven record of expertise and the ability to deliver value fast. It happens to be the same sectors mentioned earlier today. Areas again like agrifood, infrastructure, and clean tech––areas in which countries like the Philippines are making important investments and where Canadian businesses are ready to offer goods, services, and their own investment,” he said.

In a Facebook post, the Department of Finance said that B2Gold Corp., a Vancouver-based low-cost international senior gold producer, has expressed interest in expanding its operations in the Philippines. The mining firm currently operates a gold mine in Masbate. — Luisa Maria Jacinta C. Jocson

Inflation battles continue as new BSP chief aims to reign in price hikes

Credit: BSP

The new governor of the Bangko Sentral ng Pilipinas (BSP) considers elevated inflation as an immediate challenge and is determined to bring it back to the 2-4% target range by the fourth quarter.

During the Philippine economic briefing in Toronto, Canada, BSP Governor Eli M. Remolona said that the country faced unusual supply shocks in the past year.

“We adhere to an inflation-targeting framework. We focus largely on price stability,” said Mr. Remolona.

He also said that the BSP has a more hawkish approach to taming inflation compared to the US Federal Reserve, which prioritizes stabilizing both inflation and employment.

“The BSP is determined to bring inflation back toward its target range,” he said. “We had an inflation rate as high as 8.7% in the beginning of 2023. The last number is 5.4% (in June). Our models tell us that we will be within the 2-4% target range by the last quarter of this year.”

Although the headline inflation rate cooled to 5.4% in June, marking a 14-month low, it still exceeded the BSP’s 2-4% target range for the 15th consecutive month.

For the first half of the year, inflation settled at 7.2%, surpassing the central bank’s forecast of 5.4%.

Finance Secretary Benjamin E. Diokno expressed confidence in the government’s measures, saying that inflation will return to the target range of 2-4% by the fourth quarter of this year and drop below the lower limit of the target by the first quarter of 2024.

The government will continue its efforts to analyze the demand and supply conditions of key commodities through the Inter-agency Committee on Inflation and Market Outlook.

Apart from managing inflation, the Philippine central bank is also committed to managing climate change risks and achieving sustainable outcomes, according to Mr. Remolona.

“What we’re trying to do is work with climate scientists to develop a taxonomy of bank assets related to climate change,” he said.

He also noted that climate-related financial disclosures are part of the BSP’s sustainable agenda.

“We look at each kind of loan or each kind of asset and what it’s financing, and decide what it’s doing for climate change. Is it bad? Is slowing down climate change? Or is it accelerating our climate change?” Mr. Remolona said.

“We will weigh each type of assets in the books of the banks, and then we will give the bank an overall rating of its role in climate change. And then we will disclose that, and the banks will be asked to disclose those assets. We hope the disclosure alone would do the trick,” he said.

The BSP is collaborating with the Securities and Exchange Commission and the Insurance Commission to develop a Sustainable Finance Taxonomy, as mentioned in its 2022 sustainability report.

The central bank possesses additional tools to encourage banks to mitigate climate change, Mr. Remolona added. — Keisha B. Ta-asan

Philippines plans debut $1 billion sukuk bond deal this year

Buildings are seen along EDSA in Quezon City, July 3. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

The Philippines is planning its debut in the Islamic bond market as it looks to fund its budget deficit, Finance Secretary Benjamin E. Diokno said.

The Southeast Asian country intends to raise $1 billion in Islamic bonds, also known as sukuk bonds, Mr. Diokno said in an interview Thursday on the sidelines of an event in Toronto.

“We want to penetrate the Middle East market,” said Treasurer Rosalia V. de Leon, adding that banks don’t have a mandate for the transaction yet. “We’re working on the structure” of the notes, she said.

The volume of outstanding sukuk bonds during the 12 months ended June 30 grew by 10% compared to the prior-year period and for the first time exceeded $800 billion, Fitch Ratings said in a report Thursday.

While issuance may slow in the third quarter, it is expected to pick up in the final three months of the year, Fitch said.

The government seeks to ease its fiscal burden and bring the budget shortfall to 3% of economic output by the end of President Ferdinand Marcos Jr.’s term in 2028, from around 7% last year.

The planned borrowing — potentially consisting of a 5-year and a 10-year tranche — may take place later this year, subject to market conditions, Ms. de Leon said. “We are looking at 10 years, but we are also being advised that the sweet spot would be five years,” she said.

The Philippines is among Asia’s fastest-growing economies, beating growth expectations in the first quarter.

Gross domestic product in the three months through March rose 6.4% from a year earlier, compared to a 6.2% median estimate in a Bloomberg survey. The government is targeting gross domestic product growth of 6% to 7% this year.

On top of the sukuk transaction, the government plans to raise $2 billion by selling US dollar denominated bonds to retail investors, Mr. Diokno said.

The Philippines is also looking to improve its revenue collection by streamlining government transactions, as well as pushing for new taxes including on single-use plastics and digital services, the finance chief said during a briefing by the nation’s economic managers. — Bloomberg

Let your kids shine the brightest at SM Little Stars 2023

From left to right: 2017 Grand Girl Winner Gaea Salipot, 2013 Boy Grand Winner Nhikzy Calma, 2013 3rd Runner-Up Esang De Torres, Sam Concepcion, Teacher Georcelle Dapat-Sy of G-Force, SM Little Stars Project Head Hanna Carinna Sy, SM Supermalls President Steven Tan, SM Supermalls Senior Vice President for Marketing Joaquin San Agustin, Sparkle GMA Artist Center Vice President for Talent Development and Management Joy Marcelo, and National University Assistant Director of Admissions Alessa Shainne Hostalero

SM Supermalls’ search for the next biggest, brightest, and most talented kids in the country is back!

On July 6, SM Supermalls opened the pre-registration for SM Little Stars– the annual nationwide talent search for kids aged four to seven. Now in its 14th year, SM Little Stars has become a platform for some of the country’s biggest stars who are excelling in singing, acting, and modeling including 2013 Boy Grand Winner Nhikzy Calma, 2014 Girl Grand Winner Chun Sa Jung, 2013 3rd Runner-Up Esang De Torres, and 2017 Grand Girl Winner Gaea Salipot.

“SM is and will always be a safe and nurturing place for the kids. Through SM Little Stars, we are staying true to our commitment to making the kids’ malling experience fun, memorable, and rewarding for them and their families. We want to make sure that this will be worth remembering for them,” said SM Supermalls Senior Vice President for Marketing Joaquin San Agustin.

SM Little Stars Project Head Hanna Carinna Sy also said, “After an absence of three years, we are happy to be together again to launch what is undoubtedly the biggest kiddie talent search in the country, which will be held in 70 malls from Baguio and Tuguegarao to Davao and Cagayan de Oro in Mindanao.” 

SM Little Stars Project Head Hanna Carinna Sy

The kids who will make the Grand Finals will be trained by celebrity mentors in a series of workshops to develop their talents and confidence on stage. The workshops will also encourage them to bond and make new friends with their co-participants.

Stakes are higher in this year’s SM Little Stars with over P9 Million in cash and prizes starting with a brand new Suzuki S-presso Special Edition MT MC worth over P600,000; one-year talent contract at Sparkle GMA Artist Center; 100% discount on college tuition and miscellaneous fees at National University; a five-day and four-night trip for two (2) to Hong Kong; a total of P100,000 worth of cash and SM gift certificates (P50,000 cash and P50,000 worth of SM gift certificates); P30,000 worth of Toy Kingdom gift cards; an annual pass certificate for unlimited bowling game and skating admission valid for one (1) year; 30 regular ride tickets at SM by the Bay Amusement Park / Sky Ranch, and gift vouchers for a two-night stay with breakfast for two (2) at Radisson Blu Cebu await one lucky boy and lucky girl winners!

SM Supermalls Senior Vice President for Marketing Joaquin San Agustin and Sparkle GMA Artist Center Vice President for Talent Development and Management Joy Marcelo seal the partnership between SM Supermalls and Sparkle GMA Artist Center for SM Little Stars winners.

To register, the parent/guardian must bring their child’s original and photocopy of their birth certificates as well as two (2) copies of 4R size of their photo taken with light make-up only with one (1) close-up shot and one (1) whole body shot to select SM Supermalls nationwide. This will be attached to their application form which should be filled up and signed by the parents and/or legal guardians. To apply online, go to https://smsupermalls.com/smlittlestars/.

SM Little Stars 2023 will run from July 15 to August 27 so hurry and register your talented little ones! To know more about SM Little Stars 2023 and the full list of prizes, visit smsupermalls.com or follow @SMSupermalls on social media.

 


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